Investing.com - The euro edged higher against the U.S. dollar on Tuesday, after Germany’s parliament endorsed a second bailout for Greece by a wide margin but gains were limited after ratings agency Standard & Poor's cut Greece’s ratings to 'selective default'.
EUR/USD hit 1.3452 during late Asian trade, the session high; the pair subsequently consolidated at 1.3427, gaining 0.24%.
The pair was likely to find support at 1.3356, last Friday’s low and resistance at 1.3485, Friday’s high and a 12-week high.
Germany’s parliament approved the euro zone’s second bailout for Greece, which was signed off on by the region’s finance ministers last week, by a comfortable margin.
Ahead of the vote, German Chancellor Angela Merkel warned that that if the deal was not approved the risks to the European Union and the global economy would be “incalculable”.
Meanwhile, S&P cut Greece’s long term credit rating to 'selective default', following the government's decision to add "collective action clauses" to its bonds. These clauses compel bondholders to take part in debt restructuring if they refuse to accept a voluntary writedown on their holdings.
But both S&P and the Greek government said Greece’s rating is likely to be raised following the completion of the debt swap deal with private creditors.
The euro was slightly higher against the pound, with EUR/GBP easing up 0.05% to hit 0.8469.
Later in the day, Germany was to release official data on consumer price inflation, while the U.S. was to produce official data on durable goods orders, as well as reports on house price inflation and consumer confidence.
EUR/USD hit 1.3452 during late Asian trade, the session high; the pair subsequently consolidated at 1.3427, gaining 0.24%.
The pair was likely to find support at 1.3356, last Friday’s low and resistance at 1.3485, Friday’s high and a 12-week high.
Germany’s parliament approved the euro zone’s second bailout for Greece, which was signed off on by the region’s finance ministers last week, by a comfortable margin.
Ahead of the vote, German Chancellor Angela Merkel warned that that if the deal was not approved the risks to the European Union and the global economy would be “incalculable”.
Meanwhile, S&P cut Greece’s long term credit rating to 'selective default', following the government's decision to add "collective action clauses" to its bonds. These clauses compel bondholders to take part in debt restructuring if they refuse to accept a voluntary writedown on their holdings.
But both S&P and the Greek government said Greece’s rating is likely to be raised following the completion of the debt swap deal with private creditors.
The euro was slightly higher against the pound, with EUR/GBP easing up 0.05% to hit 0.8469.
Later in the day, Germany was to release official data on consumer price inflation, while the U.S. was to produce official data on durable goods orders, as well as reports on house price inflation and consumer confidence.